# Floor & Decor Holdings (FND.US)

Canonical: https://gigainvestors.com/s/FND

Analysis as of: 2026-10-16T07:28:35.917Z. Financial observations: FY2011–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $45.76 per share; close as of 2026-10-15.

Estimated value: low $28.92 per share, central $40.40 per share, high $47.09 per share. Buy at or below the central value $40.40 per share. Valuation as of 2026-10-16T07:28:35.917Z; scenarios are not confidence intervals.

Expected annual return: 9.2% at the stated quote. About 9.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 0 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.17×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.07×

- FY2017: 0.09×

- FY2018: 0.08×

- FY2019: 0.08×

- FY2020: 0.09×

- FY2021: 0.10×

- FY2022: 0.09×

- FY2023: 0.07×

- FY2024: 0.06×

- FY2025: 0.06×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 11.0%

- ROIC, second-lowest year: 6.1%

- Typical minus recent gross margin: -1.5 pp

- Typical gross margin (annual median): 41.8%

- Recent gross margin (lower of latest and 3-year median): 43.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 9.2%

- ROIC including acquisitions, ten-year median: 7.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 18.4%

- FY2017: 29.2%

- FY2018: 24.9%

- FY2019: 10.1%

- FY2020: 11.8%

- FY2021: 12.2%

- FY2022: 9.8%

- FY2023: 7.8%

- FY2024: 6.1%

- FY2025: 3.8%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.64×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $800M

- Net income, five-year total: $1.2B

- Return on incremental invested capital: 8.5%

- Working capital / revenue, annual change: -0.5 pp

- Working capital / revenue, change between three-year averages: -4.0 pp

- Working capital / revenue, final three-year average: 11.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: -0.03×

- FY2024: 0.09×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 24.9% vs 6.1%

- Per-share earnings: 0.49 to 1.92 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.3%

- Ordinary dilution, 5-year annual growth: 0.4%

- Market cap gain: $1.7B

- Cumulative retained earnings: $1.7B

- Diluted shares, 10-year annual growth: 2.3%

- Diluted shares, 5-year annual growth: 0.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 18.7%

- Per-share value change: $1.44

- Per-share value, starting three-year median: $0.49

- Per-share value, ending three-year median: $1.92

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 0.0%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: $75M

- Cumulative net income, 10 years: $1.8B

- ROIC, first three-year median: 24.9%

- ROIC, last three-year median: 6.1%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.49

- FY2017: $1.03

- FY2018: $1.11

- FY2019: $1.44

- FY2020: $1.84

- FY2021: $2.64

- FY2022: $2.78

- FY2023: $2.28

- FY2024: $1.90

- FY2025: $1.92

### accounting: pass

- Sloan accruals: -3.2%

- Receivables to sales index (DSRI): 0.78×

- Restructuring years, last five: 2

- Stock compensation / operating cash flow: 7.7%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.83×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.17×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.6%

- FY2017: -0.6%

- FY2018: -5.6%

- FY2019: -2.1%

- FY2020: -7.3%

- FY2021: -0.5%

- FY2022: 4.3%

- FY2023: -12.0%

- FY2024: -7.9%

- FY2025: -3.2%

## Holders

- [Francois Rochon](https://gigainvestors.com/GC): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 66% since Oct 2021 · "FND Q1 Deep Dive: Demand Headwinds and Strategic Shifts Shape 2026 Outlook" (finance.yahoo.com, May 2026) · sales +5.1%

Story as of 2026-10-16T09:58:46.617Z; price observation 2026-10-15.

Price needs cash profits to grow 8.1% a year for ten years

- 2026-05-03: FND Q1 Deep Dive: Demand Headwinds and Strategic Shifts Shape 2026 Outlook ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/fnd-q1-deep-dive-demand-153255890.html))

### Sales · FY2024–2025

sales +5.1%; source https://www.sec.gov/Archives/edgar/data/1507079/000162828026009770/fnd-20251225.htm; observed 2026-02-19.

- FY2016: $1.1B 

- FY2017: $1.4B 

- FY2018: $1.7B 

- FY2019: $2.0B 

- FY2020: $2.4B 

- FY2021: $3.4B 

- FY2022: $4.3B 

- FY2023: $4.4B 

- FY2024: $4.5B 

- FY2025: $4.7B 

### Gross margin · FY2025

gross margin 43.6%; source https://www.sec.gov/Archives/edgar/data/1507079/000162828026009770/fnd-20251225.htm; observed 2026-02-19.

- FY2016: 40.9% 

- FY2017: 41.3% 

- FY2018: 41.1% 

- FY2019: 42.2% 

- FY2020: 42.7% 

- FY2021: 41.4% 

- FY2022: 40.5% 

- FY2023: 42.1% 

- FY2024: 43.3% 

- FY2025: 43.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in home improvement retail; annual sales are USD 4.7 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1507079/000162828026009770/fnd-20251225.htm (filed 2026-02-19); FY2025: revenue 4684088000; grossProfit 2043908000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FND.US: Floor & Decor Holdings, Inc., together with its subsidiaries, operates as a multi-channel specialty retailer of hard surface flooring and related accessories, and commercial surfaces seller in the United States. The company offers wood-based laminate flooring, vinyl, and engineered/composite rigid core vinyl; porcelain and ceramic tile, porcelain mosaics and tile slabs; grout, mortar, backer board, tools, adhesives, underlayments, moldings, and stair treads; and decorative tiles and mosaics, such as natural stone, porcelain, ceramic, glass, wall tile, and decorative trims. The company also provides solid prefinished and unfinished hardwood, engineered hardwood, bamboo, and wood countertops; marble, limestone, travertine, slate, ledger; and vanities, shower doors, bath accessories, faucets, sinks, custom countertops, bathroom mirrors, bathroom lighting, and kitchen cabinets. It sells products through its warehouse-format stores and five small-format design studios, as well as through Website, FloorandDecor.com. The company serves professional installers, commercial businesses, and homeowners. The company was formerly known as FDO Holdings, Inc. and changed its name to Floor & Decor Holdings, Inc. in April 2017. Floor & Decor Holdings, Inc. was founded in 2000 and is headquartered in Atlanta, Georgia.

### Why customers stay

Margins ranged from 42.1% to 43.6% during 2023–25; it earns 11% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2023: grossProfit / revenue = 42.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: grossProfit / revenue = 43.3%.

- Source: https://www.sec.gov/Archives/edgar/data/1507079/000162828026009770/fnd-20251225.htm (filed 2026-02-19); FY2025: grossProfit / revenue = 43.6%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); 10-year return on capital observations [[2016,0.18368715334777422],[2017,0.2915708347465705],[2018,0.24853351482460595],[2019,0.10130406365607493],[2020,0.11831710592335581],[2021,0.12220942569801753],[2022,0.09793521816776152],[2023,0.07775824575199465],[2024,0.061013877960779575],[2025,0.03819388410983657]]; median 0.10981058478971537. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 41% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1507079/000162828026009770/fnd-20251225.htm (filed 2026-02-19); Gross margin observations: [[2021,0.41422814343127035],[2022,0.4051417373260424],[2023,0.4210232983014506]]; range within 2 percentage points.

### Where the cash goes

Spends 36.7% of cash earnings on expansion; earns 8.5% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2016: growth capex 30738047.483807914; upkeep 43909952.516192086; owner earnings 27733047.483807914. Growth capex / owner earnings = 1.108354482202307.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2017: growth capex 43990401.89064387; upkeep 58262598.10935613; owner earnings 82587401.89064386. Growth capex / owner earnings = 0.5326526913740756.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2018: growth capex 48821766.56991699; upkeep 102575233.430083; owner earnings 65603766.56991699. Growth capex / owner earnings = 0.7441915170813457.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2019: growth capex 83984223.97554687; upkeep 112023776.02445313; owner earnings 112608223.97554687. Growth capex / owner earnings = 0.7458089738968287.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2020: growth capex 120808000; upkeep 91640000; owner earnings 194981000. Growth capex / owner earnings = 0.6195885752970802.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2021: growth capex 289475000; upkeep 118196000; owner earnings 283230000. Growth capex / owner earnings = 1.022049217950076.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2022: growth capex 301577000; upkeep 155023000; owner earnings 298195000. Growth capex / owner earnings = 1.0113415717902714.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); FY2024: growth capex 26354176.933768928; upkeep 420471823.0662311; owner earnings 17873176.933768928. Growth capex / owner earnings = 1.4745099335964333.

- Source: https://www.sec.gov/Archives/edgar/data/1507079/000162828026009770/fnd-20251225.htm (filed 2026-02-19); FY2025: growth capex 76604000; upkeep 241160000; owner earnings 208647000. Growth capex / owner earnings = 0.3671464243435084.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Incremental return on capital 0.0852421650042607, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Dividend observations: [[2016,225000000],[2017,0],[2018,0],[2019,0],[2020,0],[2021,16682000],[2022,2224000],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 1.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); FND.US SharesStats.PercentInsiders = 1.3390000000000002 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 8.1% yearly over ten years; actual growth was 21.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-19); Ten-year compound average after fade. Initial solved rate 0.10386014423128434. Price 45.76; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.2670319588133322 → FY2025 1.9244505114417214. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2017-04: $32.40 per share

- 2017-05: $38.71 per share

- 2017-06: $39.26 per share

- 2017-07: $34.62 per share

- 2017-08: $35.94 per share

- 2017-09: $38.93 per share

- 2017-10: $37.70 per share

- 2017-11: $40.59 per share

- 2017-12: $48.68 per share

- 2018-01: $46.90 per share

- 2018-02: $45.07 per share

- 2018-03: $52.12 per share

- 2018-04: $55.59 per share

- 2018-05: $47.00 per share

- 2018-06: $49.33 per share

- 2018-07: $47.75 per share

- 2018-08: $36.76 per share

- 2018-09: $30.17 per share

- 2018-10: $25.58 per share

- 2018-11: $33.13 per share

- 2018-12: $25.90 per share

- 2019-01: $34.29 per share

- 2019-02: $37.18 per share

- 2019-03: $41.22 per share

- 2019-04: $48.02 per share

- 2019-05: $35.52 per share

- 2019-06: $41.90 per share

- 2019-07: $39.15 per share

- 2019-08: $49.22 per share

- 2019-09: $51.15 per share

- 2019-10: $45.83 per share

- 2019-11: $48.01 per share

- 2019-12: $50.81 per share

- 2020-01: $49.31 per share

- 2020-02: $51.05 per share

- 2020-03: $32.09 per share

- 2020-04: $42.40 per share

- 2020-05: $52.00 per share

- 2020-06: $57.65 per share

- 2020-07: $65.90 per share

- 2020-08: $73.24 per share

- 2020-09: $74.80 per share

- 2020-10: $73.00 per share

- 2020-11: $80.09 per share

- 2020-12: $92.85 per share

- 2021-01: $92.07 per share

- 2021-02: $95.09 per share

- 2021-03: $95.48 per share

- 2021-04: $110.92 per share

- 2021-05: $98.31 per share

- 2021-06: $105.70 per share

- 2021-07: $122.01 per share

- 2021-08: $123.30 per share

- 2021-09: $120.79 per share

- 2021-10: $135.92 per share

- 2021-11: $128.91 per share

- 2021-12: $130.01 per share

- 2022-01: $108.72 per share

- 2022-02: $95.62 per share

- 2022-03: $81.00 per share

- 2022-04: $79.72 per share

- 2022-05: $75.44 per share

- 2022-06: $62.96 per share

- 2022-07: $80.57 per share

- 2022-08: $81.36 per share

- 2022-09: $70.26 per share

- 2022-10: $73.37 per share

- 2022-11: $74.63 per share

- 2022-12: $69.63 per share

- 2023-01: $90.77 per share

- 2023-02: $91.81 per share

- 2023-03: $98.22 per share

- 2023-04: $99.34 per share

- 2023-05: $91.31 per share

- 2023-06: $103.96 per share

- 2023-07: $114.85 per share

- 2023-08: $99.70 per share

- 2023-09: $90.50 per share

- 2023-10: $82.40 per share

- 2023-11: $91.71 per share

- 2023-12: $111.56 per share

- 2024-01: $100.56 per share

- 2024-02: $121.12 per share

- 2024-03: $129.62 per share

- 2024-04: $110.33 per share

- 2024-05: $116.86 per share

- 2024-06: $99.41 per share

- 2024-07: $98.00 per share

- 2024-08: $112.44 per share

- 2024-09: $124.17 per share

- 2024-10: $103.05 per share

- 2024-11: $112.21 per share

- 2024-12: $99.70 per share

- 2025-01: $100.10 per share

- 2025-02: $96.63 per share

- 2025-03: $80.47 per share

- 2025-04: $71.44 per share

- 2025-05: $71.69 per share

- 2025-06: $75.96 per share

- 2025-07: $76.64 per share

- 2025-08: $81.92 per share

- 2025-09: $73.70 per share

- 2025-10: $62.48 per share

- 2025-11: $63.62 per share

- 2025-12: $60.89 per share

- 2026-01: $65.96 per share

- 2026-02: $69.09 per share

- 2026-03: $50.80 per share

- 2026-04: $48.40 per share

- 2026-05: $51.40 per share

- 2026-06: $59.36 per share

- 2026-07: $57.57 per share

- 2026-08: $50.27 per share

- 2026-09: $45.81 per share

- 2026-10: $45.76 per share

## Annual estimated value (USD per share)

- FY2016: low $3.43 per share, central $3.90 per share, high $4.53 per share

- FY2017: low $4.01 per share, central $4.56 per share, high $5.30 per share

- FY2018: low $5.25 per share, central $5.98 per share, high $6.94 per share

- FY2019: low $8.17 per share, central $9.30 per share, high $10.80 per share

- FY2020: low $16.19 per share, central $18.09 per share, high $20.62 per share

- FY2021: low $26.58 per share, central $37.69 per share, high $44.16 per share

- FY2022: low $37.73 per share, central $53.90 per share, high $63.32 per share

- FY2023: low $38.89 per share, central $55.56 per share, high $65.27 per share

- FY2024: low $40.01 per share, central $56.77 per share, high $66.53 per share

- FY2025: low $27.60 per share, central $38.81 per share, high $45.34 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1507079/000162828026009770/fnd-20251225.htm); period 2025-12-25, filed 2026-02-19.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.